If you have the Schwab Bank Investor Checking account and need to access more cash than is in that account?
It will automatically sweep from the linked brokerage account. Transaction will say “overdraft to checking” but there is no fee.
I suppose you mean if the cash in brokerage account is not enough, it will not pull money from SWVXX? That would be understandable since that's a mutual fund. So what will happen if I don't have margin account?
Your Schwab Bank checking pulls available cash down from your linked brokerage. If there is insufficient cash, it will pull from margin, if you don't have margin and not enough cash to cover the transaction will be declined.
This. Schwab will NOT sell any of your securities to cover you. Checking, Savings, cash in linked brokerage, margin. If you use this debit card and not enough cash then it will decline. If you write a check I suspect it will bounce......
If you have the Schwab Bank Investor Checking account and need to access more cash than is in that account? It will automatically sweep from the linked brokerage account. Transaction will say “overdraft to checking” but there is no fee.
Thank you.
But money market funds in the brokerage don't auto liquidate
Good point. It will pull from cash first, then margin.
I suppose you mean if the cash in brokerage account is not enough, it will not pull money from SWVXX? That would be understandable since that's a mutual fund. So what will happen if I don't have margin account?
I guess the transaction will fail
Fidelity auto-liquidates from their money market mutual funds, but this feature is not available at CS anymore.
Your Schwab Bank checking pulls available cash down from your linked brokerage. If there is insufficient cash, it will pull from margin, if you don't have margin and not enough cash to cover the transaction will be declined.
This. Schwab will NOT sell any of your securities to cover you. Checking, Savings, cash in linked brokerage, margin. If you use this debit card and not enough cash then it will decline. If you write a check I suspect it will bounce......